Effective annual interest rate on additional amount

Assignment Help Financial Management

Reference no: EM131918385

You are in escrow to buy a house for 1,200,000. You have a closing of two 30 yr fully amortizing mortgage loans with monthly payments 1. If you make a 10% down payment you can obtain a loan with a 6% annual interest rate or 2 if you make a 20% down payment you can obtain a loan with a 5% annual interest rate. What is the effective annual interest rate on the additional amount borrowed if you take the first loan?

Reference no: EM131918385

Questions Cloud

How should you format your essay : How should you format your essay? Write your essay for a reader who is an educated adult who is not familiar with the issue and its opposing views.

What does the balance sheet look like in dollars now : what does the balance sheet look like in dollars now? what does the balance sheet look like in dollars?

Prepare a contribution margin analysis report : Based upon the following data taken from the records of Bruce Inc., prepare a contribution margin analysis report for the year ended December 31, 2012

Calculate the value of the call option and the other values : Calculate the value of the call option and the other values (given below) using a two period (two step or state) binomial tree.

Effective annual interest rate on additional amount : What is the effective annual interest rate on the additional amount borrowed if you take the first loan?

What was your paper about : What was your paper about, what article was examined, what were your findings. It must be of the word length listed about, and is one unindented paragraph.

Why tobacco is a public health concern : CHP 328-Public Health Science - identifying why your topic is a public health concern and to describe how the three core functions of public health

What is the amount of her gain : What is the amount of her gain, and where on the 4797 will she report the sale?

What work is required to translate raw data into journalism : Are the Wikileaks documents newsworthy? Why or why not? What work is required to translate the raw data into journalism?

User Account

All Pages